Facilitating seller financing and advance payment for sellers in a full service trade system

ABSTRACT

The present invention provides a comprehensive, integrated, computerized system for facilitating transactions in goods or services. The system is capable of facilitating transactions from early or initial stages, such as an electronically proposed purchase order, through to later or final stages, such as payment on an invoice or invoices relating to the transaction. The system is integrated to include the participation of various providers of services ancillary to transactions, such as guarantors, insurers, and shippers.  
     The system may allow sellers or buyers to electronically propose amendments and counter-amendments to, and to amend, through mutual agreement, a purchase order agreement. Any amendments are accounted for in later stages of the transaction facilitated by the system. The system may monitor, utilizing stored transaction information, present and anticipated future credit exposures of buyers, and utilizes the buyer credit exposure information for purposes including facilitating providing buyer credit assurance to sellers. The system may facilitate sellers obtaining financing or advance payment relating to transactions. The system may provide opportunities for sellers or buyers to obtain cargo insurance on goods or services shipped in accordance with transactions.

CROSS-REFERENCE TO RELATED PRIORITY APPLICATION

[0001] This application claims the benefit of U.S. ProvisionalApplication Serial No. 60/240,818, filed on Oct. 16, 2000 and entitled,“Trade System.”

CROSS-REFERENCE TO RELATED PATENTS AND APPLICATION

[0002] This application is related to U.S. patent application Ser. No.08/323,071, filed on Oct. 13, 1994, issued as U.S. Pat. No. 5,717,989 onFeb. 10, 1998, and entitled, “FULL SERVICE TRADE SYSTEM,” which U.S.Patent is hereby incorporated herein by reference in its entirety, andto U.S. patent application Ser. No. 09/020,740, filed on Feb. 9, 1998,issued as U.S. Pat. No. 6,151,588 on Nov. 21, 2000 and entitled, “FULLSERVICE TRADE SYSTEM,” which U.S. Patent is hereby incorporated hereinby reference in its entirety. Further, this application is related toU.S. application Ser. No. 09/536,190, filed on Mar. 27, 2000, andentitled, “FULL SERVICE TRADE SYSTEM,” which is hereby incorporatedherein by reference in its entirety.

COPYRIGHT NOTICE

[0003] A portion of the disclosure of this patent document containsmaterial which is subject to copyright protection. The copyright ownerhas no objection to the facsimile reproduction by anyone of the patentdocument or the patent disclosure, as it appears in the Patent andTrademark Office patent files or records, but otherwise reserves allcopyright rights whatsoever.

FIELD OF THE INVENTION

[0004] This invention relates in general to electronic trading systemsand methods, and in particular to computerized systems and methods forfacilitating transactions in one or more goods or services or services.

BACKGROUND OF THE INVENTION

[0005] There are many examples of situations and contexts in whichbuyers and sellers may enjoy advantages by utilizing an electronictrading system. As one of numerous examples of such contexts, buyers andsellers may wish to transact with one another even though they may havenever met each other, or are unfamiliar with the reputations of eachother's businesses. This is frequently the case, for example, ininternational trade, where the buyer and the seller are often strangersseparated by large distances and international borders. In suchsituations, buyers and sellers may be understandably wary of transactingwith each other. Sellers would be more comfortable receiving paymentprior to the shipment of their goods, but buyers would be morecomfortable receiving seller's goods prior to making payment. Withoutconfidence in the opposing party, a buyer or seller may be reluctant oreven unwilling to enter into a transaction.

[0006] For these and other reasons, a traditional paper system hasdeveloped, involving the participation of financial institutions,shippers, and use of such documents as the Letter of Credit (LOC) andthe Bill of Lading (BOL). In such a system, a buyer has the buyer's bankissue a LOC guaranteeing to the seller's bank that payment will be madeso long as specified agreed to terms such as shipment content, date,etc. are satisfied. In turn, the seller's bank guarantees payment to theseller so long as the specified terms are met.

[0007] Once the seller has complied with the specified terms, the sellermust prove such to the seller's bank. This is often done by presenting aBOL to the seller's bank, which the seller received from the shipperupon presentation of the goods to the shipper. Other documents mightalso be required for presentation. Upon presenting appropriatedocumentation, the seller is paid by the seller's bank. The seller'sbank is then reimbursed by the buyer's bank and the seller's bank givesthe BOL to the buyer's bank. The buyer must then pay the buyer's bank inorder to obtain the BOL from the buyer's bank. The buyer may then obtainthe goods by presenting the BOL to the shipper upon delivery. Theabove-described traditional paper system, however, is burdened withvarious inefficiencies and may be prone to fraud, and represents one ofmany contexts in which an electronic trading system would be desirablewhich avoids disadvantages and inefficiencies of traditional papertrading systems.

[0008] Electronic systems for facilitating various aspects of trade andtransactions are known in the art. Patent Cooperation Treatyinternational application, International Publication No. WO 00/48053,having inventors Mallon et al., published on Aug. 17, 2000, is entitled,“Commercial Transaction Management System and Method,” and discloses amethod and system for providing to commercial market participants adedicated data processor for consolidating and expediting a financialsettlement system. Upon placement of a commercial transaction order,various transaction documents such as the purchase order, confirmationorder, invoice and bill of lading are transmitted to the data processorin electronic format and stored in a database. Following delivery of thegoods or services to the buyer, the carrier generates a proof ofdelivery document which is thereafter forwarded to the data processor.The various transaction information is then audited and reconciled bythe data processor, for purposed including facilitating early resolutionof possible exceptions or problems which may prevent timely payment.

[0009] Patent Cooperation Treaty international application,International Publication No. WO 00/55774, having inventors Barry et al.(hereinafter, “Barry et al.”), published on Sep. 21, 2000, is entitled,“Transaction Support System,” and discloses a centralized databasesystem for supporting transactions in property. The central database isaccessed over a public network, such as the Internet, and forms a titleregistry recording the entitlements of the users, to allow performanceof prescribed actions in relation to electronically related records.Barry et al. further discloses a method and system wherein thecollection of transaction information may be processed to providescoring of risk to a financial institution, such risk being calculatedbased upon individual transactions as well as the transaction historybetween the buyer and the seller.

[0010] Patent Cooperation Treaty international application,International Publication No. WO 01/41096, having inventors Katsman etal., published on Jun. 7, 2001, is entitled, “Secure Payment and TradeManagement System,” and relates to a system which recognizes andreserves funds against a credit account established by a buyer with afinancial institution in the form of a credit card or bank line ofcredit used to issue an electronic documentary credit.

[0011] U.S. Pat. No. 6,167,385 issued on Dec. 26, 2000 toHartley-Urquhart, entitled, “Supply Chain Financing System and Method,”relates to financing a supply of goods from a supplier to a buyer, inwhich the buyer has a lower cost of funds than the supplier. The buyergenerates a purchase order for the goods which is forwarded to thesupplier who in turn ships the goods to the buyer. The supplier sends aninvoice to the buyer and invoice data is stored in a database. Thefinancing institution electronically accesses the database to retrievedaily invoices. The financial institution then calculates the financingapplicable to the shipped goods and forwards payment to the supplier.Upon maturity of the financing, the buyer settles with the financialinstitution by remitting the gross proceeds.

[0012] Patent Cooperation Treaty international application,International Publication No. WO 00/70519, having inventors Falic et al.and published on Nov. 23, 2000 is entitled, “Network AccessibleQuotation and Shipping System,” and discloses a transportation logisticssystem. The system is intended to provide to vendors or shoppers, at thetime of a purchase, a total global delivered cost quote for shipping aproduct between locations. The system is accessible over a circuitswitched network, such as the Internet, and includes a Web server and aproprietary database. A total delivered cost engine retrieves thenecessary information for the database, given the requestor input, andperforms the necessary calculations. The total delivered cost quote,which includes any applicable inland origin freight, inland destinationfreight, air freight, ocean freight, insurance, duties, taxes customclearance fee, import fee, or service fee is presented to the requestor.

[0013] While the above-described prior art systems are of utility infacilitating certain aspects of certain transactions in certaincontexts, none provide a truly comprehensive, full-featured electronictrading system. Various qualities can be envisioned as ideally beingpresent in an electronic trading system. The system ideally would beable to facilitate transactions from start through finish, and be ableto access and utilize a database of trade information for variouspurposes, which database might contain information relating to numeroustransactions between numerous sellers and buyers. The system ideallywould allow as many trade-related features and functions as possible,for the convenience and efficiency of its users. The system wouldideally integrate or allow access to ancillary service providers such aslenders, funders, guarantors, insurers, and shippers. Finally, thesystem would ideally work in an integrated fashion, permitting varioussynergies resulting from combinations of features.

[0014] Various particular features of a comprehensive trade system canbe envisioned. A system that would allow a seller and a buyer to amend apreviously agreed-to purchase order agreement would be desirable, topermit the buyer and the seller greater flexibility in the transaction.Such amendments would ideally be carried over to later aspects of thetransaction. A system is further desirable that would be capable ofmonitoring credit exposures of buyers utilizing transaction informationstored by the system, and that would utilize buyer credit exposureinformation for purposes including facilitation providing buyer creditassurance to sellers. The system would further ideally have access toexisting buyer transactions to be able to project future creditexposure. The system would further ideally facilitate and utilize itsstored trade information in facilitating sellers obtaining financing,for example, to produce goods to comply with a purchase order agreement.The system would further ideally facilitate and utilize its stored tradeinformation in facilitating sellers obtaining advance payment on apurchase order agreement. For example, the seller might obtain advancepayment from a lender who might then become entitled to payment from thebuyer. The system would further ideally facilitate and utilize itsstored trade information in facilitating providing cargo insurance ongoods shipped in accordance with transactions facilitated by the system.

SUMMARY OF THE INVENTION

[0015] The present invention provides an improved a trade system,including allowing amendment of a purchase order agreement, providingbuyer credit monitoring or facilitating providing buyer creditassurance, facilitating providing financing or advance payment forsellers, and providing cargo insurance.

[0016] In one embodiment, the invention provides a computerized systemfor facilitating transactions in goods or services. The system includes:means for allowing electronic procurement of a purchase order agreementbetween a seller and a buyer and relating to a transaction in one ormore goods or services, and for electronically storing the purchaseorder agreement; means for allowing electronic modification of thepurchase order agreement upon agreement by the seller and the buyer tothe modification; means for receiving and storing electronic evidencethat the seller has performed in connection with fulfilling the seller'sobligations as defined by the purchase order agreement as modified byany modifications; and, means for electronically evaluating whether theseller has complied with the seller's obligations as defined by thepurchase order agreement as modified by any modifications.

[0017] In another embodiment, the invention provides a computerizedsystem for facilitating transactions in goods or services. The systemincludes: means for allowing electronic procurement of a purchase orderagreement between a seller and a buyer and relating to a transaction inone or more goods or services, and for electronically storing thepurchase order agreement; means for allowing electronic modification ofthe purchase order agreement upon agreement by the seller and the buyerto the modification; means for receiving and storing electronic evidencethat the seller has performed in connection with fulfilling the seller'sobligations as defined by the purchase order agreement as modified byany modifications; means for electronically evaluating whether theseller has complied with the seller's obligations as defined by thepurchase order agreement as modified by any modifications; means forelectronically providing a payment instruction if the seller has beenevaluated to have complied with the seller's obligations as defined bythe purchase order agreement as modified by any modifications; and,means for receiving and storing electronic evidence that the buyer hasmade one or more payments in connection with fulfilling buyer'sobligations as defined by the purchase order agreement as modified byany modifications.

[0018] In another embodiment, the invention provides a computerizedsystem for facilitating transactions in goods or services. The systemincludes: means for allowing electronic agreement being storedelectronically and relating to a transaction in one or more goods orservices, comprising means for allowing electronic negotiation betweenthe seller and the buyer relating to establishing the purchase orderagreement; means for allowing electronic modification of the purchaseorder agreement upon agreement by the seller and the buyer to themodification; means for receiving and storing electronic evidence thatthe seller has performed in connection with fulfilling the seller'sobligations as defined by the purchase order agreement; and, means forelectronically evaluating whether the seller has complied with theseller's obligations as defined by the purchase order agreement.

[0019] In another embodiment, the invention provides a computerizedsystem for facilitating transactions in goods or services. The systemincludes: means for allowing electronic procurement of a purchase orderagreement between a seller and a buyer, the purchase order agreementbeing stored electronically and relating to a transaction in one or moregoods or services, comprising means for allowing electronic negotiationbetween the seller and the buyer relating to establishing the purchaseorder agreement; means for allowing electronic modification of thepurchase order agreement upon agreement by the seller and the buyer tothe modification; means for receiving and storing electronic evidencethat the seller has performed in connection with fulfilling the seller'sobligations as defined by the purchase order agreement; means forelectronically evaluating whether the seller has complied with theseller's obligations as defined by the purchase order agreement; meansfor electronically providing a payment instruction if the seller hasbeen evaluated to have complied with the seller's obligations as definedby the purchase order agreement; and, means for receiving and storingelectronic evidence that the buyer has made one or more payments inconnection with fulfilling buyer's obligations as defined by thepurchase order agreement as modified by any modifications.

[0020] In another embodiment, the invention provides a computerizedmethod for facilitating transactions in goods or services. The methodincludes: allowing electronic procurement of a purchase order agreementbetween a seller and a buyer, the purchase order agreement being storedelectronically and relating to a transaction in one or more goods orservices; allowing electronic modification of the purchase orderagreement upon agreement by the seller and the buyer to themodification; receiving and storing electronic evidence that the sellerhas performed in connection with fulfilling the seller's obligations asdefined by the purchase order agreement; and, electronically evaluatingwhether the seller has complied with the seller's obligations as definedby the purchase order agreement.

[0021] In another embodiment, the invention provides a computerizedmethod for facilitating transactions in goods or services. The methodincludes: allowing electronic procurement of a purchase order agreementbetween a seller and a buyer, the purchase order agreement being storedelectronically and relating to a transaction in one or more goods orservices; allowing electronic modification of the purchase orderagreement upon agreement by the seller and the buyer to themodification; receiving and storing electronic evidence that the sellerhas performed in connection with fulfilling the seller's obligations asdefined by the purchase order agreement; electronically evaluatingwhether the seller has complied with the seller's obligations as definedby the purchase order agreement; electronically providing a paymentinstruction if the seller has been evaluated to have complied with theseller's obligations as defined by the purchase order agreement; and,receiving and storing electronic evidence that the buyer has made one ormore payments in connection with fulfilling buyer's obligations asdefined by the purchase order agreement as modified by anymodifications.

[0022] In another embodiment, the invention provides a computerizedmethod for facilitating transactions in goods or services. The methodincludes: allowing electronic procurement of a purchase order agreementbetween a seller and a buyer, the purchase order agreement being storedelectronically and relating to a transaction in one or more goods orservices, comprising allowing electronic negotiation between the sellerand the buyer relating to establishing the purchase order agreement;allowing electronic modification of the purchase order agreement uponagreement by the seller and the buyer to the modification; receiving andstoring electronic evidence that the seller has performed in connectionwith fulfilling the seller's obligations as defined by the purchaseorder agreement; and, electronically evaluating whether the seller hascomplied with the seller's obligations as defined by the purchase orderagreement.

[0023] In another embodiment, the invention provides a computerizedmethod for facilitating transactions in goods or services. The methodincludes: allowing electronic procurement of a purchase order agreementbetween a seller and a buyer, the purchase order agreement being storedelectronically and relating to a transaction in one or more goods orservices, comprising allowing electronic negotiation between the sellerand the buyer relating to establishing the purchase order agreement;means for allowing electronic modification of the purchase orderagreement upon agreement by the seller and the buyer to themodification; receiving and storing electronic evidence that the sellerhas performed in connection with fulfilling the seller's obligations asdefined by the purchase order agreement; electronically evaluatingwhether the seller has complied with the seller's obligations as definedby the purchase order agreement; electronically providing a paymentinstruction if the seller has been evaluated to have complied with theseller's obligations as defined by the purchase order agreement; and,receiving and storing electronic evidence that the buyer has made one ormore payments in connection with fulfilling buyer's obligations asdefined by the purchase order agreement as modified by anymodifications.

[0024] In another embodiment, the invention provides a computer usablemedium storing program code which, when executed on a computerizeddevice, causes the computerized device to execute a method forfacilitating transactions in goods or services. The method includes:allowing electronic procurement of a purchase order agreement between aseller and a buyer and relating to a transaction in one or more goods orservices, and electronically storing the purchase order agreement;allowing electronic modification of the purchase order agreement uponagreement by the seller and the buyer to the modification; receiving andstoring electronic evidence that the seller has performed in connectionwith fulfilling the seller's obligations as defined by the purchaseorder agreement as modified by any modifications; electronicallyevaluating whether the seller has complied with the seller's obligationsas defined by the purchase order agreement as modified by anymodifications; electronically providing a payment instruction if theseller has been evaluated to have complied with the seller's obligationsas defined by the purchase order agreement as modified by anymodifications; and, receiving and storing electronic evidence that thebuyer has made one or more payments in connection with fulfillingbuyer's obligations as defined by the purchase order agreement asmodified by any modifications.

[0025] In another embodiment, the invention provides a computer usablemedium storing program code which, when executed on a computerizeddevice, causes the computerized device to execute a method forfacilitating transactions in goods or services. The method includes:allowing electronic procurement of a purchase order agreement between aseller and a buyer and relating to a transaction in one or more goods orservices, comprising allowing electronic negotiation between the sellerand the buyer relating to establishing the purchase order agreement, andelectronically storing the purchase order agreement; allowing electronicmodification of the purchase order agreement upon agreement by theseller and the buyer to the modification receiving and storingelectronic evidence that the seller has performed in connection withfulfilling the seller's obligations as defined by the purchase orderagreement; electronically evaluating whether the seller has compliedwith the seller's obligations as defined by the purchase orderagreement; electronically providing a payment instruction if the sellerhas been evaluated to have complied with the seller's obligations asdefined by the purchase order agreement; and, receiving and storingelectronic evidence that the buyer has made one or more payments inconnection with fulfilling buyer's obligations as defined by thepurchase order agreement as modified by any modifications.

[0026] In another embodiment, the invention provides a computerizedsystem for facilitating transactions in goods or services. The systemincludes: means for allowing electronic procurement of a purchase orderagreement between a seller and a buyer and relating to a transaction inone or more goods or services, and for electronically storing thepurchase order agreement; means for evaluating the buyer's cumulativecredit exposure at at least one particular time, based upon buyertransaction activity information stored within the system; means forreceiving and storing electronic evidence that the seller has performedin connection with fulfilling the seller's obligations as defined by thepurchase order agreement; and, means for electronically evaluatingwhether the seller has complied with the seller's obligations as definedby the purchase order agreement.

[0027] In another embodiment, the invention provides a computerizedsystem for facilitating transactions in goods or services. The systemincludes: means for allowing electronic procurement of a purchase orderagreement between a seller and a buyer and relating to a transaction inone or more goods or services, and for electronically storing thepurchase order agreement; means for evaluating the buyer's cumulativecredit exposure at at least one particular time, based upon buyertransaction activity information stored within the system; means forreceiving and storing electronic evidence that the seller has performedin connection with fulfilling the seller's obligations as defined by thepurchase order agreement; means for electronically evaluating whetherthe seller has complied with the seller's obligations as defined by thepurchase order agreement; means for electronically providing a paymentinstruction if the seller has been evaluated to have complied with theseller's obligations as defined by the purchase order agreement; and,means for receiving and storing electronic evidence that the buyer hasmade one or more payments in connection with fulfilling buyer'sobligations as defined by the purchase order agreement.

[0028] In another embodiment, the invention provides a computerizedmethod for facilitating transactions in goods or services. The methodincludes: allowing electronic procurement of a purchase order agreementbetween a seller and a buyer and relating to a transaction in one ormore goods or services, and electronically storing the purchase orderagreement; evaluating the buyer's cumulative credit exposure at at leastone particular time, based upon buyer transaction activity informationstored within the system; receiving and storing electronic evidence thatthe seller has performed in connection with fulfilling the seller'sobligations as defined by the purchase order agreement; and,electronically evaluating whether the seller has complied with theseller's obligations as defined by the purchase order agreement.

[0029] In another embodiment, the invention provides a computerizedmethod for facilitating transactions in goods or services. The methodincludes: allowing electronic procurement of a purchase order agreementbetween a seller and a buyer and relating to a transaction in one ormore goods or services, and electronically storing the purchase orderagreement; evaluating the buyer's cumulative credit exposure at at leastone particular time, based upon buyer transaction activity informationstored within the system; receiving and storing electronic evidence thatthe seller has performed in connection with fulfilling the seller'sobligations as defined by the purchase order agreement; and,electronically evaluating whether the seller has complied with theseller's obligations as defined by the purchase order agreement;electronically providing a payment instruction if the seller has beenevaluated to have complied with the seller's obligations as defined bythe purchase order agreement; and, receiving and storing electronicevidence that the buyer has made one or more payments in connection withfulfilling buyer's obligations as defined by the purchase orderagreement.

[0030] In another embodiment, the invention provides a computer usablemedium storing program code which, when executed on a computerizeddevice, causes the computerized device to execute a computerized methodfor facilitating transactions in goods or services. The method includes:allowing electronic procurement of a purchase order agreement between aseller and a buyer and relating to a transaction in one or more goods orservices, and electronically storing the purchase order agreement;evaluating the buyer's cumulative credit exposure at at least oneparticular time, based upon buyer transaction activity informationstored within the system; receiving and storing electronic evidence thatthe seller has performed in connection with fulfilling the seller'sobligations as defined by the purchase order agreement; electronicallyevaluating whether the seller has complied with the seller's obligationsas defined by the purchase order agreement; electronically providing apayment instruction if the seller has been evaluated to have compliedwith the seller's obligations as defined by the purchase orderagreement; and, receiving and storing electronic evidence that the buyerhas made one or more payments in connection with fulfilling buyer'sobligations as defined by the purchase order agreement.

[0031] In another embodiment, the invention provides a computerizedsystem for facilitating transactions in goods or services. The systemincludes: means for allowing electronic procurement of a purchase orderagreement between a seller and a buyer and relating to a transaction inone or more goods or services, and for electronically storing thepurchase order agreement; means for electronically providing anopportunity for the seller to obtain financing in relation to producingthe one or more goods or services; means for receiving and storingelectronic evidence that the seller has performed in connection withfulfilling the seller's obligations as defined by the purchase orderagreement; and, means for electronically evaluating whether the sellerhas complied with the seller's obligations as defined by the purchaseorder agreement.

[0032] In another embodiment, the invention provides a computerizedsystem for facilitating transactions in goods or services. The systemincludes: means for allowing electronic procurement of a purchase orderagreement between a seller and a buyer and relating to a transaction inone or more goods or services, and for electronically storing thepurchase order agreement; means for receiving and storing electronicevidence that the seller has performed in connection with fulfilling theseller's obligations as defined by the purchase order agreement; meansfor electronically evaluating whether the seller has complied with theseller's obligations as defined by the purchase order agreement; and,means for electronically providing an opportunity for the seller toobtain advance payment in relation to the purchase order agreement.

[0033] In another embodiment, the invention provides a computerizedsystem for facilitating transactions in goods or services. The systemincludes: means for allowing electronic procurement of a purchase orderagreement between a seller and a buyer and relating to a transaction inone or more goods or services, and for electronically storing thepurchase order agreement; means for electronically providing anopportunity for the seller to obtain financing in relation to the one ormore goods; means for receiving and storing electronic evidence that theseller has performed in connection with fulfilling the seller'sobligations as defined by the purchase order agreement; means forelectronically evaluating whether the seller has complied with theseller's obligations as defined by the purchase order agreement; meansfor electronically providing a payment instruction if the seller hasbeen evaluated to have complied with the seller's obligations as definedby the purchase order agreement; and, means for receiving and storingelectronic evidence that the buyer has made one or more payments inconnection with fulfilling buyer's obligations as defined by thepurchase order agreement.

[0034] In another embodiment, the invention provides a computerizedsystem for facilitating transactions in goods or services. The systemincludes: means for allowing electronic procurement of a purchase orderagreement between a seller and a buyer and relating to a transaction inone or more goods or services, and for electronically storing thepurchase order agreement; means for receiving and storing electronicevidence that the seller has performed in connection with fulfilling theseller's obligations as defined by the purchase order agreement; meansfor electronically evaluating whether the seller has complied with theseller's obligations as defined by the purchase order agreement; meansfor electronically providing an opportunity for the seller to obtainadvance payment in relation to the purchase order agreement; means forelectronically providing a payment instruction if the seller has beenevaluated to have complied with the seller's obligations as defined bythe purchase order agreement; and, means for receiving and storingelectronic evidence that the buyer has made one or more payments inconnection with fulfilling buyer's obligations as defined by thepurchase order agreement.

[0035] In another embodiment, the invention provides a computerizedmethod for facilitating transactions in goods or services. The methodincludes: allowing electronic procurement of a purchase order agreementbetween a seller and a buyer and relating to a transaction in one ormore goods or services, and electronically storing the purchase orderagreement; electronically providing an opportunity for the seller toobtain financing in relation to the one or more goods or services;receiving and storing electronic evidence that the seller has performedin connection with fulfilling the seller's obligations as defined by thepurchase order agreement; and, electronically evaluating whether theseller has complied with the seller's obligations as defined by thepurchase order agreement.

[0036] In another embodiment, the invention provides a computerizedmethod for facilitating transactions in goods or services. The methodincludes: allowing electronic procurement of a purchase order agreementbetween a seller and a buyer and relating to a transaction in one ormore goods or services, and electronically storing the purchase orderagreement; receiving and storing electronic evidence that the seller hasperformed in connection with fulfilling the seller's obligations asdefined by the purchase order agreement; electronically evaluatingwhether the seller has complied with the seller's obligations as definedby the purchase order agreement; and, means for electronically providingan opportunity for the seller to obtain advance payment in relation tothe purchase order agreement.

[0037] In another embodiment, the invention provides a computerizedmethod for facilitating transactions in goods or services. The methodincludes: allowing electronic procurement of a purchase order agreementbetween a seller and a buyer and relating to a transaction in one ormore goods or services, and electronically storing the purchase orderagreement; electronically providing an opportunity for the seller toobtain financing in relation to the one or more goods or services;receiving and storing electronic evidence that the seller has performedin connection with fulfilling the seller's obligations as defined by thepurchase order agreement; electronically evaluating whether the sellerhas complied with the seller's obligations as defined by the purchaseorder agreement; electronically providing a payment instruction if theseller has been evaluated to have complied with the seller's obligationsas defined by the purchase order agreement; and, receiving and storingelectronic evidence that the buyer has made one or more payments inconnection with fulfilling buyer's obligations as defined by thepurchase order agreement.

[0038] In another embodiment, the invention provides a computer usablemedium storing program code which, when executed on a computerizeddevice, causes the computerized device to execute a computerized methodfor facilitating transactions in goods or services. The method includes:allowing electronic procurement of a purchase order agreement between aseller and a buyer and relating to a transaction in one or more goods orservices, and electronically storing the purchase order agreement;receiving and storing electronic evidence that the seller has performedin connection with fulfilling the seller's obligations as defined by thepurchase order agreement; electronically evaluating whether the sellerhas complied with the seller's obligations as defined by the purchaseorder agreement; electronically providing an opportunity for the sellerto obtain advance payment in relation to the purchase order agreement;electronically providing a payment instruction if the seller has beenevaluated to have complied with the seller's obligations as defined bythe purchase order agreement; and, receiving and storing electronicevidence that the buyer has made one or more payments in connection withfulfilling buyer's obligations as defined by the purchase orderagreement.

[0039] In another embodiment, the invention provides a computerizedsystem for facilitating transactions in goods or services. The systemincludes: means for allowing electronic procurement of a purchase orderagreement between a seller and a buyer and relating to a transaction inone or more goods or services, and for electronically storing thepurchase order agreement; means for receiving and storing electronicevidence that the seller has performed in connection with fulfilling theseller's obligations as defined by the purchase order agreement; meansfor electronically providing an opportunity for at least one of theseller and the buyer to obtain, through the system, cargo insurancerelating to the one or more goods or services to insure against risk ofloss in connection with shipment of the one or more goods or services inaccordance with the transaction; and, means for electronicallyevaluating whether the seller has complied with the seller's obligationsas defined by the purchase order agreement.

[0040] In another embodiment, the invention provides a computerizedsystem for facilitating transactions in goods or services. The systemincludes: means for allowing electronic procurement of a purchase orderagreement between a seller and a buyer and relating to a transaction inone or more goods or services, and for electronically storing thepurchase order agreement; means for receiving and storing electronicevidence that the seller has performed in connection with fulfilling theseller's obligations as defined by the purchase order agreement; meansfor electronically providing an opportunity for at least one of theseller and the buyer to obtain, through the system, cargo insurancerelating to the one or more goods or services to insure against risk ofloss in connection with shipment of the one or more goods or services inaccordance with the transaction; means for electronically evaluatingwhether the seller has complied with the seller's obligations as definedby the purchase order agreement; means for electronically providing apayment instruction if the seller has been evaluated to have compliedwith the seller's obligations as defined by the purchase orderagreement; and, means for receiving and storing electronic evidence thatthe buyer has made one or more payments in connection with fulfillingbuyer's obligations as defined by the purchase order agreement.

[0041] In another embodiment, the invention provides a computerizedmethod for facilitating transactions in goods or services. The methodincludes: allowing electronic procurement of a purchase order agreementbetween a seller and a buyer and relating to a transaction in one ormore goods or services, and electronically storing the purchase orderagreement; receiving and storing electronic evidence that the seller hasperformed in connection with fulfilling the seller's obligations asdefined by the purchase order agreement; electronically providing anopportunity for at least one of the seller and the buyer to obtain,through the system, cargo insurance relating to the one or more goods orservices to insure against risk of loss in connection with shipment ofthe one or more goods or services in accordance with the transaction;and, electronically evaluating whether the seller has complied with theseller's obligations as defined by the purchase order agreement.

[0042] In another embodiment, the invention provides a computerizedmethod for facilitating transactions in goods or services. The methodincludes: allowing electronic procurement of a purchase order agreementbetween a seller and a buyer and relating to a transaction in one ormore goods or services, and electronically storing the purchase orderagreement; receiving and storing electronic evidence that the seller hasperformed in connection with fulfilling the seller's obligations asdefined by the purchase order agreement; electronically providing anopportunity for at least one of the seller and the buyer to obtain,through the system, cargo insurance relating to the one or more goods orservices to insure against risk of loss in connection with shipment ofthe one or more goods or services in accordance with the transaction;electronically evaluating whether the seller has complied with theseller's obligations as defined by the purchase order agreement;electronically providing a payment instruction if the seller has beenevaluated to have complied with the seller's obligations as defined bythe purchase order agreement; and, receiving and storing electronicevidence that the buyer has made one or more payments in connection withfulfilling buyer's obligations as defined by the purchase orderagreement.

BRIEF DESCRIPTION OF THE DRAWINGS

[0043] The invention is illustrated in the figures of the accompanyingdrawings which are meant to be exemplary and not limiting, in which likereferences are intended to refer to like or corresponding parts, and inwhich:

[0044]FIG. 1 is a block diagram of a distributed computer systemaccording to one embodiment of the invention, depicting a servercomputer having a purchase order agreement amendment program;

[0045]FIG. 2 is a flow diagram depicting a trade method according to oneembodiment of the invention, including allowing a seller or buyer toamend a purchase order agreement;

[0046]FIG. 3 is a flow diagram depicting a trade method according to oneembodiment of the invention, including allowing a seller and a buyer toamend a purchase order agreement and including providing a paymentinstruction and receiving evidence of payment by the buyer;

[0047]FIG. 4 is a flow diagram depicting a method for negotiation ofamendment to a purchase order agreement, according to one embodiment ofthe invention;

[0048]FIG. 5 is a block diagram of a distributed computer systemaccording to one embodiment of the invention, depicting a servercomputer having a credit monitoring program;

[0049]FIG. 6 is a flow diagram depicting a trade method according to oneembodiment of the invention, including evaluating a buyer's cumulativecredit exposure;

[0050]FIG. 7 is a flow diagram depicting a trade method according to oneembodiment of the invention, including evaluating a buyer's cumulativecredit exposure and including providing a payment instruction andreceiving evidence of payment by the buyer;

[0051]FIG. 8 is a flow diagram depicting a purchase order agreementamendment negotiation method according to one embodiment of theinvention, including evaluating a buyer's cumulative credit exposure andconditionally providing an opportunity for the seller to obtain buyercredit assurance;

[0052]FIG. 9 is a block diagram of a distributed computer systemaccording to one embodiment of the invention, depicting a servercomputer having a seller financing program;

[0053]FIG. 10 is a flow diagram depicting a trade method according toone embodiment of the invention, including providing an opportunity forthe seller to obtain financing;

[0054]FIG. 11 is a flow diagram depicting a trade method according toone embodiment of the invention, including providing an opportunity forthe seller to obtain financing and including providing a paymentinstruction and receiving evidence of payment by the buyer;

[0055]FIG. 12 is a flow diagram depicting a trade method according toone embodiment of the invention, including providing an opportunity forthe seller to obtain advance payment;

[0056]FIG. 13 is a flow diagram depicting a trade method according toone embodiment of the invention, including providing an opportunity forthe seller to obtain advance payment and including providing a paymentinstruction and receiving evidence of payment by the buyer;

[0057]FIG. 14 is a block diagram of a distributed computer systemaccording to one embodiment of the invention, depicting a servercomputer having a cargo insurance program;

[0058]FIG. 15 is a flow diagram depicting a trade method according toone embodiment of the invention, including providing an opportunity fora seller or a buyer to obtain cargo insurance through the system; and

[0059]FIG. 16 is a flow diagram depicting a trade method according toone embodiment of the invention, including providing an opportunity fora seller or a buyer to obtain cargo insurance through the system andincluding providing a payment instruction and receiving evidence ofpayment by the buyer.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENT

[0060] In the following description of the preferred embodiment,reference is made to the accompanying drawings that form a part hereof,and in which is shown by way of illustration a specific embodiment inwhich the invention may be practiced. It is to be understood that otherembodiments may be utilized and structural changes may be made withoutdeparting from the scope of the present invention.

[0061] The present invention provides a comprehensive, integrated,multi-featured electronic trading system capable of facilitatingtransactions, including initial or early stages of a transaction, suchas a proposed purchase order, through to later or final stages, such aspayment on an invoice or invoices relating to the transaction.

[0062] In one embodiment, the system allows sellers or buyers to proposeamendments and counter-amendments to, and to amend, through mutualagreement, a purchase order agreement. Any amendments are accounted forin later aspects of the transaction facilitated by the system. Inanother embodiment, the system, utilizing transaction information storedby the system, monitors present and anticipated future credit exposuresof buyers, and utilizes the buyer credit exposure information forpurposes including facilitating providing buyer credit assurance tosellers. In another embodiment, the system facilitates sellers obtainingfinancing or advance payment relating to transactions. In anotherembodiment, the system provides opportunities for sellers or buyers toobtain cargo insurance on goods or services shipped in accordance withtransactions.

[0063] The present application is related to previously incorporated byreference and commonly assigned U.S. Pat. No. 5,717,989, issued on Feb.10, 1998 and entitled, “FULL SERVICE TRADE SYSTEM,” to previouslyincorporated by reference and commonly assigned U.S. Pat. No. 6,151,588,issued on Nov. 21, 2000 and entitled, “FULL SERVICE TRADE SYSTEM,” andto commonly assigned U.S. application Ser. No. 09/536,190, filed on Mar.27, 2000 and entitled, “FULL SERVICE TRADE SYSTEM,” hereinaftercollectively referred to as the “Full Service Trade System Patents andApplication.” The trade system disclosed in the Full Service TradeSystem Patents and Applications is hereinafter referred to as the FullService Trade System. The stages of a transaction, as disclosed in theFull Service Trade System Patents and Application, can be roughly brokendown into a number of stages.

[0064] The four stages can be termed procurement, fulfillment,compliance, and settlement, and all are facilitated electronicallythrough the disclosed trade system, with data stored electronically.Procurement may begin with a proposed purchase order, may include anegotiation process between a potential buyer and a potential seller,and may end with a purchase order agreement specifying terms of thetransaction and being agreed to by both parties. Fulfillment representsthe stage in which the seller fulfills the seller's obligations underthe purchase order agreement. Fulfillment may begin with the creation ofthe purchase order agreement and may end when the seller creates aninvoice document specifying shipped goods and required payment. Thefulfillment stage may also include a logistics service providerproducing a proof of delivery document such as a waybill, and aninspection service provider producing an inspection certificate.Compliance begins when all required fulfillment documents have beencompleted. During compliance, various ones of the electronic documents,such as the purchase order agreement and the invoice, are comparedagainst each other, and discrepancies are noted. The buyer may benotified of discrepancies, which are to be waived by the buyer orresolved with the seller. The settlement stage is the stage in which oneor more payment instructions may be provided to the buyer by the tradesystem. Also during settlement, payment may be made according to theterms of the transaction, whether within or outside of the trade system,and the trade system may store information indicating that payment hasbeen made and the amount of payment. All of these stages may befacilitated electronically by embodiments of the Full Service TradeSystem, and the present invention is described with reference to tradesystem functionality as disclosed in the Full Service Trade SystemPatent and Applications.

[0065] In some embodiments of the present invention, a feature of someembodiments of the Full Service Trade System is incorporated, thefeature comprising the ability of the Full Service Trade System to,under appropriate conditions, provide a payment guarantee to a seller toguarantee payment by a buyer in connection with a purchase orderagreement. This feature is described in detail in the Full Service TradeSystem Patents and Application. For example, in some embodiments, thesystem comprises means for evaluating whether a first set of paymentguarantee criteria are met, and means for, if the first set of paymentguarantee criteria are evaluated to be met, the system providing apayment guarantee to the seller to guarantee payment by the buyer inconnection with the purchase order agreement. Numerous examples ofcriteria, which may be stored in a trade database accessible by thesystem, are disclosed, and include qualifications of the seller of thebuyer stored in the system, the credit exposure of the buyer beingwithin a specified acceptable limit, and the seller being evaluated bythe system to have complied with the seller's obligations as defined bythe purchase order agreement.

[0066]FIG. 1 is a block diagram of a distributed computer system 100according to one embodiment of the invention, depicting a servercomputer 102 having a purchase order agreement amendment program 114. Inthe computer system depicted in FIG. 1, a server computer 102 isconnected to a plurality of client computers 106 via the Internet 104.While only one server computer is shown, the invention contemplatesembodiments having multiple server computers. While the server computer102 and the client computers 106 are shown as connected via the Internet104, the invention also contemplates connection via other types ofnetworks and arrays of networks, including one or more wide areanetworks or one or more local area networks, and the inventioncontemplates embodiments in which no connection to the Internet 104 isprovided.

[0067] Each of the client computers 106 comprises one or more centralprocessing units (CPUs) 124 as well as one or more data storage devices126 which may include one or more Internet browser programs. Theplurality of client computers 106 comprise one or more seller computers118, one or more buyer computers 120, and may comprise one or moreancillary service provider 20 computers 122 for ancillary serviceproviders such as guarantors, insurers, and shippers.

[0068] The server computer 102 comprises one or more CPUs 108, one ormore data storage devices 110, and a trade database. The data storagedevices 110, 126 may comprise various amounts of RAM, for storingcomputer programs and other data. In addition, the server computer 102and the client computers 106 may include other components typicallyfound in computers, including one or more output devices such asmonitors, other fixed or removable data storage devices such as harddisks, floppy disk drives, and CD-ROM drives, and one or more inputdevices such as mouse pointing devices and keyboards. Generally, theserver computer 102 and the client computers 106 operate under andexecute computer programs under the control of an operating system, suchas Windows, Macintosh, UNIX, etc.

[0069] The data storage device 110 of the server computer 102 comprisesa trade program 112 comprising a trade database 116 and a purchase orderagreement amendment program 114. As shown in FIG. 1, the trade database116 is included within the server computer 102, but embodiments arecontemplated in which the trade database 116 is located elsewhere andaccessible by the server computer 102. The trade program 112 and tradedatabase 116 are intended to include, but not be limited to including,all of the programming and data for carrying out, in variousembodiments, some or all of the functions of the Full Service TradeSystem, as summarized broadly above with regard to the stages of atransaction, and as disclosed in greater detail in the Full ServiceTrade System Patent and Applications. The purchase order agreementamendment program 114 is intended to represent programming necessary,within the trade program 114, for carrying out purchase order agreementamendment functions, as described in detail below, and the tradedatabase 116 is intended to include all of the data necessary forcarrying out purchase order agreement amendment functions. Although thepurchase order agreement amendment program 114 is depicted conceptuallyas a unit within the trade program 112, it is to be understood that thepurchase order agreement amendment program 114 may comprise programmingthat is incorporated as part of the programming of the trade program 112itself, or may be a modular component thereof.

[0070]FIG. 2 is a flow diagram depicting a trade method 200 according toone embodiment of the invention, including allowing a seller or buyer toamend a purchase order agreement. As indicated above, a purchase orderagreement is an electronic document that specifies terms of atransaction and is agreed to by a buyer and a seller. The purchase orderagreement defines the obligations of the seller and the buyer withrespect to the transaction, and may include a type of good or goods tobe purchased, an amount of goods, price of the goods, and various otherinformation. The purchase order agreement may arise from negotiationsbetween the seller and the buyer relating to one or more proposedpurchase order agreements proposed through the system by the buyer orthe seller.

[0071] Method 200 represents a purchase order agreement amendmentfunction incorporated as part of an electronic trade method. At step202, the trade program 112 allows electronic procurement of a purchaseorder agreement between the seller and the buyer and relating to atransaction in one or more goods, and electronically stores the purchaseorder agreement in the trade database 116. It is to be understood that,while the invention is described primarily with reference totransactions in goods, the invention is also applicable to transactionsin services, or transactions in goods and services. Step 202 comprisesthe system 100 performing procurement stage functions, as disclosed indetail in the Full Service Trade System Patents and Applications. Aseller and a buyer may be referred to hereinafter as the “transactingparties.” Step 202 may involve negotiation between the transactingparties to arrive at the mutually agreed upon purchase order agreement,which negotiation may include the parties electronically communicatingto each other proposed purchase orders, counter-proposals, etc. similarto and discussed with reference to the negotiation process describedbelow with reference to FIG. 4.

[0072] At step 204, the trade program 112, utilizing the purchase orderagreement amendment program 114, allows electronic modification of thepurchase order agreement upon agreement by the seller and the buyer tothe modification. Step 204 is intended to include any negotiationbetween the seller and the buyer with regard to the modifications (asdescribed with reference to FIG. 4). Once modified, the purchase orderagreement as modified is utilized throughout the remainder of the method200. Steps 202 and 204 comprises the system 100 performing procurementstage functions, as disclosed in detail in the Full Service Trade SystemPatents and Applications.

[0073] At step 206, the trade program 112 receives and stores in thetrade database 116 electronic evidence that the seller has performed inconnection with fulfilling the seller's obligations as defined by thepurchase order agreement as modified by any modifications. This step mayrepresent the seller or other party entering in data to be stored in thetrade database 116, such as electronic forms or documents, indicating orproving that the seller has shipped goods to the buyer, the type andquantity of the goods, etc. Step 206 comprises the system 100 performingfulfillment stage functions, as disclosed in detail in the Full ServiceTrade System Patents and Applications.

[0074] At step 208, the trade program 112 electronically evaluateswhether the seller has complied with the seller's obligations as definedby the purchase order agreement as modified by any modifications. Step208 represents the trade program 112 performing compliance stagefunctions, as described above, including comparing the purchase orderagreement to the invoice, etc., but with the trade program 112 utilizingthe purchase order agreement as modified by any modifications.

[0075] While steps 206 and 208 are described with reference to theseller complying the seller's obligations, it is to be understood thatthis may include, in some embodiments, the seller complying with aportion of the seller's obligations, such as by making a partialshipment of goods.

[0076]FIG. 3 is a flow diagram depicting a trade method 300 according toone embodiment of the invention, including allowing a seller and a buyerto amend a purchase order agreement and including providing a paymentinstruction and receiving evidence of payment by the buyer. Steps 202through 208 are described in detail above.

[0077] At step 302, the trade program 112 electronically provides apayment instruction if the seller has been evaluated to have compliedwith the seller's obligations as defined by the purchase order agreementas modified by any modifications. For example, step 302 may comprise thesystem 100 sending an electronic message such as an e-mail message tothe buyer to indicate to the buyer that the seller has complied with theseller's obligations and that payment is due from the buyer by the datespecified in the purchase order agreement.

[0078] At step 304, the trade program 112 receives and stores in thetrade database 116 electronic evidence that the buyer has made one ormore payments in connection with fulfilling the buyer's obligations asdefined by the purchase order agreement as modified by anymodifications. Step 304 may comprise the buyer or another partyelectronically entering in to the system 100, through an electronic formor otherwise, that a payment has been made, the amount of the payment,the date of payment, etc. Step 304 comprise the system 100 performingsettlement stage functions, as disclosed in detail in the Full ServiceTrade System Patents and Applications, but utilizing the purchase orderagreement as modified by any modifications.

[0079]FIG. 4 is a flow diagram depicting a method 400 for negotiation ofamendment to a purchase order agreement, according to one embodiment ofthe invention. In some embodiments of the invention, the method 400depicted in FIG. 4 represents a part of step 204, as described abovewith reference to FIGS. 2-3.

[0080] The method 400 begins after the purchase order agreement has beenestablished by agreement of the transacting parties. At step 402, thetrade program 112 allows a first transacting party to electronicallycommunicate to a second transacting party a proposed modification to oneor more terms of the purchase order agreement. For example, step 402 maycomprise the first transacting party electronically indicating aproposed modification or modifications to the purchase order agreement,such as changing the price term, the quantity, the payment due date, theshipment by date, etc., or several thereof. For example, the proposedchanging could be indicted by strike-outs, bold face type, etc., on anelectronic representation of the purchase order agreement. Such changesare merely proposed changes, however, unless accepted by the secondtransacting party.

[0081] At step 404, the trade program 112 allows the second transactingparty to electronically communicate to the first transacting party thatthe second transacting party accepts the proposed modifications,declines the proposed modifications, or proposes a counter modification.A counter-modification may take the form of additional strike-outs,etc., to the communication from the first transacting party, or may beproposed changes entirely unrelated to the first transacting party'sproposal or communicated entirely separately therefrom. Arrow 408 isintended to indicate that the negotiation process described in steps 402and 404 can repeat any number times, with different transacting partiesproposing different proposals and counter-proposals, and withpotentially multiple agreed-to modifications.

[0082] At step 406, the trade program 112 modifies the purchase orderagreement to incorporate any modifications that have been proposed byone transacting party and accepted by the other transacting party. Step406 comprises the trade program 112 incorporating any number ofmodifications that have been agreed to in this fashion.

[0083] The result of method 400 is a negotiation process through whichthe seller and the buyer may modify, through mutual agreement, anelectronic purchase order agreement. This provides the transactingparties with an important feature to be utilized within the system 100.Additionally, the transacting parties can count on the system 100utilizing the modified purchase order agreement in any and all laterstages of the transaction facilitated by the system 100.

[0084] In another embodiment of the invention, a negotiation processsimilar to that described with reference to FIG. 4 may be utilized alsoin a process of negotiating and establishing the purchase orderagreement. For example, in such embodiments, the transacting parties cancommunicate proposed purchase orders and counter-proposals, untilmutually agreeing upon and establishing the purchase order agreement.

[0085] In some embodiments of the invention, the trade program 112causes an electronic audit trail to be stored in the trade database 116.For example, an audit trail may indicate proposed modifications,counter-proposals, declinations of proposed modifications, andacceptances of proposed modifications, for later reference. The audittrail may include details such as the exact modification proposed,declined, or accepted, the date, time, and the chronological order ofthe proposals, declinations, or acceptances, thus providing an accurateaccount of the history of the purchase order agreement and its evolutionthrough negotiation. The audit trail may even indicate a person or groupwithin a transacting party's organization that was responsible for theaction, by, for example, the system 100 requiring that the party takingthe action electronically sign the communication. The audit trail maylater be accessed by one or both of the transacting parties, or byanother entity, for example, to aid in dispute resolution. In someembodiments, a similar audit trail relating to proposed purchase ordersis stored for later reference.

[0086] In some embodiments of the invention, different people or groupswithin a transacting party's organization have different rights withregard to proposing, declining, or accepting modifications, and therights may, for example, be assigned through the system 100 by a systemadministrator within the transacting party's organization.

[0087] The trade program 112 automatically checks attempted proposedmodifications and refreshes electronic documents, so that, if theproposed modification has implications requiring further information orcauses inconsistencies, the party attempting to make the proposedmodification must clarify, add required additional information, orabandon the proposed modification, as appropriate. For example, changinga transacting party responsible for inspection of goods may requireentry of a selected inspector, without which selection the trade program112 will not allow the proposed modification. Additionally, the tradeprogram 112 may refresh other electronic forms and documents related tothe transaction when proposed modification to the purchase order ismade, to reflect the proposed modification, and again may require anynecessary clarification or additional information before allowing theproposal. Any modifications that actually occur to the purchase orderagreement are reflected by making any corresponding changes to otheraffected forms, documents, or other data. The process of documentchecking in the above-described manner is sometimes referred to asdocument validation.

[0088]FIG. 5 is a block diagram of a distributed computer system 500according to one embodiment of the invention, depicting a servercomputer 102 having a credit monitoring program 504. Many components ofthe system 500 of FIG. 5 have been previously described with referenceto system 100 FIG. 1.

[0089] The trade program 502 and trade database 506 are intended toinclude, but not be limited to including, all of the programming anddata for carrying out, in various embodiments, some or all of thefunctions of the Full Service Trade System, as summarized broadly abovewith regard to the stages of a transaction, and as disclosed in greaterdetail in the Full Service Trade System Patent and Applications. Thecredit monitoring program 504 is intended to represent programmingnecessary for credit monitoring functions, as described in detail below,and the trade database 506 is intended to include all of the datanecessary for carrying out credit monitoring functions. Although thecredit monitoring program 504 is depicted conceptually as a unit withinthe trade program 502, it is to be understood that the credit monitoringprogram 504 may comprise programming that is actually incorporated aspart of the programming of the trade program 502 itself, or may be amodular component thereof.

[0090]FIG. 6 is a flow diagram depicting a trade method 600 according toone embodiment of the invention, including evaluating a buyer'scumulative credit exposure.

[0091] Method 600 represents a credit monitoring function incorporatedas part of an electronic trade method. At step 202, the trade program502 allows electronic procurement of a purchase order agreement betweenthe seller and the buyer and relating to a transaction in one or moregoods, and electronically stores the purchase order agreement in thetrade database 506. Step 202 comprises the system 500 performingprocurement stage functions, as disclosed in detail in the Full ServiceTrade System Patents and Applications.

[0092] At step 602, the trade program 502, utilizing the creditmonitoring program 504, evaluates the buyer's cumulative credit exposureat at least one particular time, based upon transaction activityinformation stored in the trade database 506.

[0093] At step 604, the trade program 502 receives and stores in thetrade database 506 electronic evidence that the seller has performed inconnection with fulfilling the seller's obligations as defined by thepurchase order agreement. This step may represent the seller or otherparty entering in data to be stored in the trade database 116, such aselectronic forms or documents, indicating or proving that the seller hasshipped goods to the buyer, the type and quantity of the goods, etc.Step 604 comprises the system 500 performing fulfillment stagefunctions, as disclosed in detail in the Full Service Trade SystemPatents and Applications.

[0094] At step 606, the trade program 502 electronically evaluateswhether the seller has complied with the seller's obligations as definedby the purchase order agreement. Step 606 represents the trade program502 performing compliance stage functions, including comparing thepurchase order agreement to the invoice, etc.

[0095]FIG. 7 is a flow diagram depicting a trade method 700 according toone embodiment of the invention, including evaluating a buyer'scumulative credit exposure and including providing a payment instructionand receiving evidence of payment by the buyer.

[0096] Steps 202 through 606 are described above. Steps 608 and 610comprise the system 500 performing settlement stage functions, asdisclosed in detail in the Full Service Trade System Patents andApplication. At step 608, the trade program 502 electronically providesa payment instruction if the seller has been evaluated to have compliedwith the seller's obligations as defined by the purchase orderagreement. For example, step 608 may comprise the system 500 sending anelectronic message such as an e-mail message to the buyer to indicate tothe buyer that the seller has complied with the seller's obligations andthat payment is due from the buyer by the date specified in the purchaseorder agreement.

[0097] At step 610, the trade program 502 receives and stores in thetrade database 506 electronic evidence that the buyer has made one ormore payments in connection with fulfilling the buyer's obligations asdefined by the purchase order agreement. Step 610 may comprise the buyeror another party electronically entering in to the system 500, throughan electronic form or otherwise, that a payment has been made, theamount of the payment, the date of payment, etc. Step 610 comprises thesystem 500 performing the settlement stage functions, as disclosed indetail in the Full Service Trade System Patents and Applications.

[0098]FIG. 8 is a flow diagram depicting a purchase order agreementamendment negotiation method 800 according to one embodiment of theinvention, including evaluating a buyer's cumulative credit exposure andconditionally providing an opportunity for the seller to obtain buyercredit assurance.

[0099] Steps 202 and 602 are described above with reference to FIG. 7.At step 802, the system 500, if the buyer's cumulative credit exposureis less than a pre-defined maximum, provides an opportunity for theseller to obtain buyer credit assurance to assure against risk of lossto the seller resulting from failure of the buyer to make a requiredpayment in connection with the transaction. Steps 604-610 are describedabove with reference to FIG. 7.

[0100] The trade database 506 may contain data relating to transactionsand transaction activity between buyers and sellers, including, amongother data, purchase order agreements, invoices, and settlement data.Utilizing data stored in the trade database, the trade program 502 canmonitor, at any particular time or times, credit exposures of buyers.For example, purchase order agreements and invoices stored in thedatabase may indicate payment obligations of buyers, including amount ofpayment required, and dates by which such payment obligations must bemet. Further, settlement data may indicate whether any payments havebeen made in relation to the purchase order, and the amount of payment.

[0101] In some embodiments, the trade program 502, utilizing the creditmonitoring program 504, may use this information to determine, for aparticular buyer, at a particular time, the cumulative credit exposureof the buyer, by adding all invoices indicating payment obligations ofthe buyer, for which payment, or complete payment, has not yet beenmade, considering any payment information stored in the trade database506. This ability, and related abilities of systems of the invention,are made possible due to the comprehensiveness of the system infacilitating all stages of transactions, and due to thecomprehensiveness of the data contained in trade databases of theinvention.

[0102] In addition to being able to monitor a buyer's cumulative creditexposure at any particular time, the trade program 502 can also monitora buyer's anticipated credit exposure over a period of time. Forexample, a buyer may have an unpaid invoice with a payment due date twoweeks in the future. In such an instance, the trade program 502 canmonitor the buyer's anticipated credit exposure by utilizing theassumption that the buyer will make the payment on the due date. Thebuyer's credit exposure will thus be evaluated to drop on the paymentdue date by the amount of the payment. If the buyer, however, forexample, makes payment one week before the payment due date, thisindicates a drop in the buyer's credit exposure as of the payment date,which could not be anticipated prior to payment. However, since thisdata may be contained in the trade program 502, if the trade program 502monitors the buyer's credit exposure after the payment date, the tradeprogram 502 may utilize this data as indicating a drop in the buyer'scredit exposure, prior to the payment due date. Further, in someembodiments, the trade program 504 periodically monitors the buyer'scredit exposure, and updates present and anticipated credit exposuresbased upon such information.

[0103] As described above, by taking into account all transactioninformation for a buyer, the trade program 502 can monitor the buyer'scumulative credit exposure, sometimes called the buyer's envelope creditexposure. In addition, in some embodiments, the trade program 502 canmonitor other types of credit exposures. For example, the trade program504 can also monitor a cumulative credit exposure between the buyer anda particular seller. For example, certain purchase order agreements andinvoices stored in the trade database may indicate transactions betweenthe buyer and seller A, while others may indicate transactions betweenthe buyer and sellers B, C, and D. By only taking into accounttransaction information pertaining to the buyer and seller A, the tradeprogram can monitor the buyers relationship credit exposure with regardto seller A.

[0104] The various credit monitoring determinations and information canbe useful in a variety of ways. The trade program 502 can communicatecredit exposure to buyers, sellers, or others for informationalpurposes. For example, present and anticipated credit exposures may becommunicated by the system in the form of a graphical display indicatingcredit exposure as a function of time.

[0105] Further, in some embodiments, credit monitoring information maybe utilized in facilitating providing credit assurance for sellersthrough the system 500, which credit assurance may assure payment to aseller based on an obligation for the buyer to make the payment. Since,typically, a seller ships goods before a buyer pays for the goods, theseller may be at risk for the cost of the goods between the time ofshipment and the time of payment. As such, credit assurance can putsellers at ease and thus lead to transactions taking place whichotherwise might not.

[0106] Credit assurance may be provided to sellers, for example, by anassurer if certain conditions are met, which conditions can bedetermined by the system 500. One condition may be that the seller beevaluated by the system 500 as having complied with the seller'sobligations as defined by a purchase order or an invoice. Otherconditions may include the transaction to be assured being below acertain maximum buyer payment obligation, which is sometimes called atransaction limit, or a buyers relationship credit exposure with theseller or envelope credit exposures being equal to or beneath specifiedmaximums, called relationship limits and envelope limits, respectively.The transaction, relationship, and envelope limits may be determined bythe assurer and entered into and stored by the system 500, or may bedetermined by the system 500 itself based upon buyer or sellerqualification information stored in the trade database 506.

[0107] Transactional, relationship, and envelope limits can serve avariety of purposes useful in determining whether to provide creditassurance. Exceeding an envelope limit can suggest that a buyer will notbe able to make payment. Exceeding a relationship limit can suggest ahigh possibility of fraud being conducted by the particular seller andbuyer together. A large individual transaction which exceeds atransactional limit can suggest a high possibility of fraud.

[0108] In some embodiments, credit assurance may be provided by thesystem 500 if, for a particular transaction, a buyer is within anylimits. The cost of the credit assurance so provided may be included infees charged to the seller or the buyer to utilize the system 500. Fortransactions exceeding limits, credit assurance may be unavailable, ormay be available to within the limits only, or may be available abovecertain specified credit exposure measures only if additional fees arepaid, or may be available above certain specified credit exposuremeasures up to a certain maximum only if additional fees are paid.Further, increments of assurance may be purchasable at different ratesdepending on how much additional assurance is desired. In someembodiments, various limits, maximums and rates can be based uponqualifications of the seller or the buyer stored in the trade database506.

[0109] In some embodiments, the trade program 502 automatically monitorsa buyer's credit exposure or exposures upon certain events taking place.For example, if a buyer or a seller proposes a purchase order which, ifaccepted, would exceed a limit causing assurance to be unavailable, thetrade program 502 may automatically provide a warning to this affect tothe buyer or the seller. As another example, upon a seller's creation ofan invoice, the trade program may automatically monitor a buyer's creditexposure and provide warnings that the transaction, or a portion of it,is not assumable, or is only assurable if additional assurance fees arepaid.

[0110] Additionally, in some instances where a buyer is over assurancelimits, the trade program 502, by monitoring anticipated buyer creditexposure, can communicate messages to the seller or the buyer indicatingfuture dates at which the buyer's credit exposure is anticipated to dropto the extent that assurance, or complete assurance, may be available.Further, if a buyer's credit exposure drops due to payment on aninvoice, for example, the trade program can automatically monitor thebuyers credit exposure, detect the drop caused by the payment, and, ifappropriate, inform the seller or the buyer that a transaction or aproposed transaction has become assurable. Still further, such informingcan take the form of a communicated graphical representation, forexample, indicating credit exposure as a function of time as well as ananticipated date at which assurance is anticipated to be available.

[0111]FIG. 9 is a block diagram of a distributed computer system 900according to one embodiment of the invention, depicting a servercomputer 102 having a seller financing program 904. Many components ofthe system 900 of FIG. 5 have been previously described with referenceto system 100 FIG. 1.

[0112] The trade program 902 and trade database 906 are intended toinclude, but not be limited to including, all of the programming anddata for carrying out, in various embodiments, some or all of thefunctions of the Full Service Trade System, as summarized broadly abovewith regard to the stages of a transaction, and as disclosed in greaterdetail in the Full Service Trade System Patent and Applications. Theseller financing program 904 is intended to represent programmingnecessary for seller financing functions, as described in detail below,and the trade database 906 is intended to include all of the datanecessary for carrying out seller financing functions. Although theseller financing program 904 is depicted conceptually as a unit withinthe trade program 902, it is to be understood that the seller financingprogram 904 may comprise programming that is actually incorporated aspart of the programming of the trade program 902 itself, or may be amodular component thereof.

[0113]FIG. 10 is a flow diagram depicting a trade method according toone embodiment of the invention, including providing an opportunity forthe seller to obtain financing.

[0114] Method 1000 represents a credit monitoring function incorporatedas part of an electronic trade method. At step 202, the trade program902 allows electronic procurement of a purchase order agreement betweenthe seller and the buyer and relating to a transaction in one or moregoods, and electronically stores the purchase order agreement in thetrade database 906. Step 202 comprises the system 900 performingprocurement stage functions, as disclosed in detail in the Full ServiceTrade System Patents and Applications.

[0115] At step 1002, the trade program 902, utilizing the sellerfinancing program 904, electronically provides an opportunity for theseller to obtain financing in relation to producing the one or moregoods.

[0116] At step 604, the trade program 902 receives and stores in thetrade database 906 electronic evidence that the seller has performed inconnection with fulfilling the seller's obligations as defined by thepurchase order agreement. This step may represent the seller or otherparty entering in data to be stored in the trade database 904, such aselectronic forms or documents, indicating or proving that the seller hasshipped goods to the buyer, the type and quantity of the goods, etc.Step 604 comprises the system 906 performing fulfillment stagefunctions, as disclosed in detail in the Full Service Trade SystemPatents and Applications.

[0117] At step 606, the trade program 902 electronically evaluateswhether the seller has complied with the seller's obligations as definedby the purchase order agreement. Step 606 represents the trade program902 performing compliance stage functions, including comparing thepurchase order agreement to the invoice, etc.

[0118]FIG. 11 is a flow diagram depicting a trade method according toone embodiment of the invention, including providing an opportunity forthe seller to obtain financing and including providing a paymentinstruction and receiving evidence of payment by the buyer;

[0119] Steps 202 through 606 are described above. Steps 608 and 610comprise the system 900 performing settlement stage functions, asdisclosed in detail in the Full Service Trade System Patents andApplication. At step 608, the trade program 902 electronically providesa payment instruction if the seller has been evaluated to have compliedwith the seller's obligations as defined by the purchase orderagreement. For example, step 608 may comprise the system 900 sending anelectronic message such as an e-mail message to the buyer to indicate tothe buyer that the seller has complied with the seller's obligations andthat payment is due from the buyer by the date specified in the purchaseorder agreement.

[0120] At step 610, the trade program 902 receives and stores in thetrade database 906 electronic evidence that the buyer has made one ormore payments in connection with fulfilling the buyer's obligations asdefined by the purchase order agreement. Step 610 may comprise the buyeror another party electronically entering in to the system 900, throughan electronic form or otherwise, that a payment has been made, theamount of the payment, the date of payment, etc. Step 610 comprises thesystem 900 performing the settlement stage functions, as disclosed indetail in the Full Service Trade System Patents and Applications.

[0121] In the methods 1000, 1100 depicted in FIGS. 10 and 11, the tradesystem 900 incorporates the feature of, after a purchase order agreementhas been established, providing sellers with an opportunity to obtainfinancing in order to produce goods to fulfill the seller's obligationsunder a purchase order agreement. In alternative embodiments of theinvention, the opportunity for sellers to obtain financing may occurprior to the establishment of the purchase order agreement.

[0122] Allowing sellers to obtain financing can allow a seller tosatisfy a purchase order agreement, or to enter into a purchase orderagreement, which the seller might otherwise be unable to do. Forexample, a seller may not have the funds to purchase parts required toproduce the goods, yet the seller knows that, through the purchase orderagreement, the seller will be entitled to payment from the buyer whichwill cover the costs of the seller's production and allow acceptableprofit. Despite this, the buyer may be unwilling to provide paymentuntil the buyer receives the goods. In this situation, the transactionmight not happen unless the seller is able to obtain financing. Thusproviding an opportunity for the seller to obtain financing is a usefulfeature to include as part of a trading system.

[0123] In one embodiment, the system 900 accomplishes providing thisopportunity by incorporating into the system the participation of, as anancillary service provider 122, a finance provider such as a financialinstitution or bank, which finance provider may be compensated for itsservice by payment from the seller. By incorporating participation of atleast all three of the seller, the buyer, and the finance provider, thesystem 900 creates advantages and efficiencies that would be unavailableif, for instance, the seller had to negotiate for financing separatelyfrom the seller's transaction with the buyer.

[0124] In one embodiment, the finance provider may be permitted accessto the system 900 to allow the finance provider to obtain creditinformation or seller qualification information stored in the tradedatabase 906 regarding the buyer or the seller so that the financeprovider can make an informed decision about whether to providefinancing, without the finance provider having to undertake aninvestigation on its own.

[0125] Additionally, the system 900 may allow the finance provider tobecome directly entitled to payment from the buyer, instead of theseller being so entitled. For example, upon a seller acceptingfinancing, the system trade program 902 may update information,including forms or documents, stored in the trade database 906 toreflect the finance provider's entitlement. In effect, this allows afinance provider to become a party to the transaction, eliminating anypossibility of the seller misdirecting received payment from the buyer,and the system 900 can thus provide security and efficiency for thefinance provider. Similarly, any credit assurance proceeds or cargoinsurance proceeds (as discussed below with reference to FIGS. 13-16)can be assigned to go directly to the finance provider.

[0126] Further, in some embodiments, the finance provider is allowedcontinuous access to information stored in the trade database 906relating to the involved transaction. For example, the finance providermay be able to access the trade database to obtain buyer credit exposureinformation. In some embodiments, the finance provider's access may belimited, such as by allowing the finance provider only to access certaininformation about the transaction, while not allowing the financeprovider to access information considered immaterial to the financeprovider's role. Additionally, the finance provider may be able toaccess transaction information but not modify the information. Also, thetrade system 900 may allow the finance provider to continually obtainfrequently updated, real time or almost real time information pertainingto the involved transaction, which up to date information might bedifficult or impossible for the finance provider to obtain without thesystem 900. Furthermore, by the finance provider being incorporated intothe system 900, the seller need not go through trouble of proving to thefinance provider, by paper documents or otherwise, information relatingto the transaction or to the seller's qualifications. In embodiments ofthe invention in which payment instructions are provided by the system900, the trade program 900 can cause such instructions to indicate thatpayment, or a portion of it, should be provided to the finance providerinstead of the seller.

[0127]FIG. 12 is a flow diagram depicting a trade method 1200 accordingto one embodiment of the invention, including providing an opportunityfor the seller to obtain advance payment. Step 202 through 606 aredescribed above. At step 1202, the trade program 1202, utilizing theseller financing program 904, electronically provides an opportunity forthe seller to obtain advance payment in relation to the purchase orderagreement.

[0128]FIG. 13 is a flow diagram depicting a trade method 1300 accordingto one embodiment of the invention, including providing an opportunityfor the seller to obtain advance payment and including providing apayment instruction and receiving evidence of payment by the buyer.

[0129] Steps 202 through 1202 are described above. Steps 608 and 610comprise the system 900 performing settlement stage functions, asdisclosed in detail in the Full Service Trade System Patents andApplication. At step 608, the trade program 902 electronically providesa payment instruction if the seller has been evaluated to have compliedwith the seller's obligations as defined by the purchase orderagreement. For example, step 608 may comprise the system 900 sending anelectronic message such as an e-mail message to the buyer to indicate tothe buyer that the seller has complied with the seller's obligations andthat payment is due from the buyer by the date specified in the purchaseorder agreement.

[0130] At step 610, the trade program 902 receives and stores in thetrade database 906 electronic evidence that the buyer has made one ormore payments in connection with fulfilling the buyer's obligations asdefined by the purchase order agreement. Step 610 may comprise the buyeror another party electronically entering in to the system 900, throughan electronic form or otherwise, that a payment has been made, theamount of the payment, the date of payment, etc. Step 610 comprises thesystem 900 performing the settlement stage functions, as disclosed indetail in the Full Service Trade System Patents and Applications.

[0131] The methods 1200, 1300 described with reference to FIGS. 13-14share many of the advantages of and are in many ways similar to themethods 1000, 1100 described above with reference to FIGS. 10-11, andthe discussion above associated with providing an opportunity to obtainfinancing is relevant also to providing an opportunity for a seller toobtain advance payment. For example, the advance payment provider may bea financial institution which may have access or limited access to thetrade database 906 to obtain information relevant to the advance paymentprovider's role. Additionally, the advance payment provider may beentitled to direct payment from the seller, and any payment instructionsprovided by the system may reflect this.

[0132] Providing an opportunity for sellers to obtain advance paymentallows sellers not only to obtain the funds more quickly, but also toeliminate any risk of loss due to failure of the buyer to providepayment, for which benefit the seller may compensate the advance paymentprovider. In the embodiments depicted in FIGS. 12 and 13, theopportunity for the seller to obtain financing occurs after thecompliance procedure in step 606. In some embodiments, the opportunitymay not be provided until the system evaluates the seller to havecomplied with the sellers obligations, such as by shipping conforminggoods in accordance with the purchase order agreement, or, if the sellerhas been evaluated to have not fully complied, until the buyer has beenevaluated to have waived any rights the buyer may have to avoid payment.In this way, the advance payment provider can be assured of its right toreceive payment from the buyer.

[0133] Appendix A comprises, at pages 55 to 61, process flow diagramsaccording to some embodiments of the invention. Appendix A, which is notmeant to be limiting, but rather illustrative of particular embodimentsof the invention, is incorporated into and forms a part of the DetailedDescription of the present application. Page 55 illustrates apre-shipment seller financing process flow, according to one embodimentof the invention. Page 56 illustrates a process flow which illustratesone embodiment of providing seller financing, in which a financeprovider is notified if certain amendments are made to a purchase orderagreement. Page 57 illustrates a process flow including cancellation ofa seller financing request and notification of certain parties of thecancellation. Page 58 illustrates a post-shipment seller financingrequest process flow. Page 59 illustrates a settlement process flow forpre-shipment seller financing and post-shipment seller financing. Page60 illustrates a post-compliance seller financing request process flow.Page 61 illustrates seller financing settlement process flow.

[0134] Appendix A, at Page 62 through 64, illustrates examples of sellerfinancing request electronic documents and layouts. Page 65 illustratesan example of information which may be made available to a sellerfinance provider. Pages 66 through 68 illustrate an example summary ofprocedures for providing seller financing.

[0135]FIG. 14 is a block diagram of a distributed computer system 1400according to one embodiment of the invention, depicting a servercomputer 102 having a cargo insurance program 1404. Many components ofthe system 1400 of FIG. 14 have been previously described with referenceto system 100 FIG. 1.

[0136] The trade program 1402 and trade database 1406 are intended toinclude, but not be limited to including, all of the programming anddata for carrying out, in various embodiments, some or all of thefunctions of the Full Service Trade System, as summarized broadly abovewith regard to the stages of a transaction, and as disclosed in greaterdetail in the Full Service Trade System Patent and Applications. Thecargo insurance program 1404 is intended to represent programmingnecessary for providing cargo insurance, as described in detail below,and the trade database 1406 is intended to include all of the datanecessary for carrying out that function. Although the cargo insuranceprogram 1404 is depicted conceptually as a unit within the trade program1402, it is to be understood that the cargo insurance program 1404 maycomprise programming that is actually incorporated as part of theprogramming of the trade program 1402 itself, or may be a modularcomponent thereof.

[0137]FIG. 15 is a flow diagram depicting a trade method 1500 accordingto one embodiment of the invention, including providing an opportunityfor a seller or a buyer to obtain cargo insurance through the system.

[0138] Method 1500 incorporates a function of providing cargo insuranceas part of an electronic trade method. The method 1500 provides anopportunity for one or both transactional parties to obtain cargoinsurance relating to a transaction. At step 202, the trade program 1402allows electronic procurement of a purchase order agreement between theseller and the buyer and relating to a transaction in one or more goods,and electronically stores the purchase order agreement in the tradedatabase 1406. Step 202 comprises the system 1400 performing procurementstage functions, as disclosed in detail in the Full Service Trade SystemPatents and Applications.

[0139] At step 604, the trade program 1402 receives and stores in thetrade database 1406 electronic evidence that the seller has performed inconnection with fulfilling the seller's obligations as defined by thepurchase order agreement. This step may represent the seller or otherparty entering in data to be stored in the trade database 1406, such aselectronic forms or documents, indicating or proving that the seller hasshipped goods to the buyer, the type and quantity of the goods, etc.Step 604 comprises the system 1400 performing fulfillment stagefunctions, as disclosed in detail in the Full Service Trade SystemPatents and Applications.

[0140] At step 1502, the trade program 1402, utilizing the cargoinsurance program 1404, provides an opportunity for at least one of thetransactional parties to obtain, through the system 1400, cargoinsurance relating to the one or more goods or services to be shipped inaccordance with the purchase order agreement, to insure against risk ofloss in connection with shipment of the one or more goods or services.

[0141] At step 606, the trade program 1402 electronically evaluateswhether the seller has complied with the seller's obligations as definedby the purchase order agreement. Step 606 represents the trade program1402 performing compliance stage functions, including comparing thepurchase order agreement to the invoice, etc.

[0142]FIG. 16 is a flow diagram depicting a trade method 1600 accordingto one embodiment of the invention, including providing an opportunityfor a transactional party to obtain cargo insurance through the systemand including providing a payment instruction and receiving evidence ofpayment by the buyer.

[0143] Steps 202 through 606 are described above. Steps 608 and 610comprise the system 1400 performing settlement stage functions, asdisclosed in detail in the Full Service Trade System Patents andApplication. At step 608, the trade program 1402 electronically providesa payment instruction if the seller has been evaluated to have compliedwith the seller's obligations as defined by the purchase orderagreement. For example, step 608 may comprise the system 1400 sending anelectronic message such as an e-mail message to the buyer to indicate tothe buyer that the seller has complied with the seller's obligations andthat payment is due from the buyer by the date specified in the purchaseorder agreement.

[0144] At step 610, the trade program 1402 receives and stores in thetrade database 1406 electronic evidence that the buyer has made one ormore payments in connection with fulfilling the buyer's obligations asdefined by the purchase order agreement. Step 610 may comprise the buyeror another party electronically entering in to the system 1400, throughan electronic form or otherwise, that a payment has been made, theamount of the payment, the date of payment, etc. Step 610 comprises thesystem 1400 performing the settlement stage functions, as disclosed indetail in the Full Service Trade System Patents and Applications.

[0145] The methods 1500, 1600 of FIGS. 15 and 16 depict embodiments ofthe invention incorporating the feature of allowing one or both of thetransactional parties to obtain cargo insurance to cover shipment of thegoods in accordance with the transaction. It is important to note that,in the methods 1500, 1600 depicted, the system 1400 itself provides theopportunity. For example, in one embodiment, the system 1400 isimplemented through the Internet, and buyers and sellers access thesystem 1400 through a Web site. In this embodiment, cargo insurance maybe offered and may be purchased without leaving the Web site itself.This is in contrast to a trade system in which a party who may desire topurchase cargo insurance are linked to a separate Web site through whichthe party may make arrangements separate from the trade system.

[0146] In traditional transactional methods, cargo insurance, ifobtained, is obtained by one of the transactional parties to cover riskof loss in connection only with that portion of the shipment processduring which risk of loss is with the purchasing party. For example,various shipping terms, or Inco terms such F.O.B. (free on board), etc.,which may be stored by the system 1400 in association with particulartransactions, are associated with different allocations between thetransactional parties of risk of loss through different portions orsegments of the shipment process. Thus, to cover the entire shipmentprocess, each party must purchase a cargo insurance policy to cover thatportion of the shipping process during which risk of loss falls uponthat party.

[0147] However, the trade system 1400 of the present invention, due toits ability to comprehensively facilitate and store information relatingto a transaction, allows the system 1500 to incorporate the feature ofbeing able to provide a “door to door” insurance policy, which singleinsurance policy covers the shipped goods throughout the entire shipmentprocess and shipment time. In one embodiment, the cargo insurance cost,or quote, may be calculated by the system based on parameters stored inthe trade database 1406, such as the ship-from location and the ship-tolocation, the means of transportation, and the cost of the goods. In oneembodiment, the trade program 1402 determines which party is providedthe opportunity to purchase cargo insurance based upon which party isevaluated by the trade program 1402 to bear a majority of the risk ofloss during shipment. For example, in one embodiment, the trade program1402 determines which transactional party to whom to provide theopportunity to purchase cargo insurance based upon the shipping term. Inother embodiments, the trade program may determine which transactionalparty to whom to provide the opportunity to purchase cargo insurancebased upon other parameters, such as which party bears risk for themajority of the distance of the shipment, or the majority of the time ofshipment, or based on other parameters, which parameters may beevaluated based on information relating to the transaction and stored inthe trade database 1406. The system 1400, in being able to provide adoor to door cargo insurance policy due in part to the comprehensivetransactional information stored in the trade database 1406, offers anew and valuable way to provide and obtain cargo insurance.

[0148] In some embodiments, the system 1400 offers a single door to doorinsurance policy, but requires that the seller and the buyer both agreeto contribute to the cost, or premium, for the insurance. The cost maybe proportioned between the buyer and the seller based on a percentageof risk of loss associated with shipment evaluated by the trade program1402 to lie with the seller, and a percentage evaluated to lie with thebuyer, which percentages may be calculated based on various parameters,as described above.

[0149] In the embodiment depicted in FIG. 1600, the system 1400facilitates the settlement process, as included in steps 608 and 610. Inone embodiment, the trade program 1402, upon purchase of cargo insurancethrough the system, the trade program 1402 produces an electronic proofof cargo insurance document in accordance with the purchased policy. Inone embodiment, the trade program 1402 automatically provides anelectronic message inviting an appropriate transactional party topurchase cargo insurance through the system 1400, and may provide anautomatically calculated quote. In some embodiments of the invention,although the cargo insurance is purchased through the system 1400, theactual cargo insurance provider is an ancillary service provider 122,separate from but associated with the system 1400 or a provider of thesystem 1400.

[0150] In traditional, paper transactional systems, a cargo insuranceprovider typically only deals with and knows one of the transactingpolicies, and therefore may only provide an insurance policy coveringthe shipment to the extent that that party bears the risk of loss. Thesystem 1400 of the invention, however, by incorporating seller, buyer,and cargo insurance provider, as well as maintaining a trade database1406 with information about a transaction, makes it efficient for acargo insurance provider to offer a single door to door cargo insurancepolicy to one or to both of the transacting parties.

[0151] Appendix A, at page 69 illustrates a chart providing an exampleof allocation of responsibilities between a seller and a buyer basedupon Inco terms. Page 70 illustrates one example of a set of electronicchecks that may be run to determine cargo insurance eligibility,according to one embodiment of the invention. Page 71 illustrates anexample of a cargo insurance quote document. Page 72 illustrates anexample of an electronic proof of cargo insurance document which may begenerated. Pages 73 through 75 illustrate process flows incorporatingproviding an opportunity for a seller or a buyer to purchase cargoinsurance, including a procurement process flow at page 73, afulfillment process flow at page 74, and a settlement process flow atpage 75.

[0152] It is to be understood that the invention contemplatesembodiments in which a trade program incorporates several or all of theprograms which have been described herein as being part of a tradeprogram in various embodiments of the invention, which can be utilizedtogether in a trade system in an integrated fashion.

[0153] While the invention has been described and illustrated inconnection with preferred embodiments, many variations and modificationsas will be evident to those skilled in this art may be made withoutdeparting from the spirit and scope of the invention, and the inventionis thus not to be limited to the precise details of methodology orconstruction set forth above as such variations and modification areintended to be included within the scope of the invention.

1. A computerized system for facilitating transactions in goods orservices, the system comprising: means for allowing electronicprocurement of a purchase order agreement between a seller and a buyerand relating to a transaction in one or more goods or services, and forelectronically storing the purchase order agreement; means forelectronically providing an opportunity for the seller to obtainfinancing in relation to producing the one or more goods or services;means for receiving and storing electronic evidence that the seller hasperformed in connection with fulfilling the seller's obligations asdefined by the purchase order agreement; and means for electronicallyevaluating whether the seller has complied with the seller's obligationsas defined by the purchase order agreement.
 2. A computerized system forfacilitating transactions in goods or services, the system comprising:means for allowing electronic procurement of a purchase order agreementbetween a seller and a buyer and relating to a transaction in one ormore goods or services, and for electronically storing the purchaseorder agreement; means for receiving and storing electronic evidencethat the seller has performed in connection with fulfilling the seller'sobligations as defined by the purchase order agreement; means forelectronically evaluating whether the seller has complied with theseller's obligations as defined by the purchase order agreement; andmeans for electronically providing an opportunity for the seller toobtain advance payment in relation to the purchase order agreement.
 3. Acomputerized system for facilitating transactions in goods or services,the system comprising: means for allowing electronic procurement of apurchase order agreement between a seller and a buyer and relating to atransaction in one or more goods or services, and for electronicallystoring the purchase order agreement; means for electronically providingan opportunity for the seller to obtain financing in relation to the oneor more goods or services; means for receiving and storing electronicevidence that the seller has performed in connection with fulfilling theseller's obligations as defined by the purchase order agreement; meansfor electronically evaluating whether the seller has complied with theseller's obligations as defined by the purchase order agreement; meansfor electronically providing a payment instruction if the seller hasbeen evaluated to have complied with the seller's obligations as definedby the purchase order agreement; and means for receiving and storingelectronic evidence that the buyer has made one or more payments inconnection with fulfilling buyer's obligations as defined by thepurchase order agreement.
 4. The system of claim 3, wherein thefinancing is to be utilized by the seller in producing one or more goodsor services in accordance with the purchase order agreement.
 5. Thesystem of claim 4, wherein the financing comprises a loan provided tothe seller by a lender.
 6. The system of claim 4, wherein the lender isa financial institution.
 7. The system of claim 3, wherein the financingis provided by a lending institution, and wherein the means forelectronically providing an opportunity for the seller to obtainfinancing in relation to the one or more goods or services comprisesmeans for allowing the seller, though the system to choose the lendinginstitution from whom the seller is requesting the financing.
 8. Thesystem of claim 7, wherein allowing the seller to choose the lendinginstitution through the system provides at least one of a customersource and a sales channel to the lending institution.
 9. The system ofclaim 5, wherein the loan is provided to the seller at least in part inreturn for the seller assigning to the lender at least a portion of theseller's entitlement to payment from the buyer in connection with thepurchase order agreement.
 10. The system of claim 9, wherein the lenderbecomes a party to a transaction associated with the purchase orderagreement, and wherein the lender becomes entitled to at least a portionof payment by the buyer in relation to the purchase order agreement. 11.The system of claim 10, comprising means to allow the lender to access afirst set of information through the system and relating to thetransaction.
 12. The system of claim 11, wherein the first set ofinformation is limited to information that is pertinent to the lender'sinvolvement in the transaction.
 13. The system of claim 11, comprisingmeans for allowing the lender access through the system to informationthrough the system relating to at least one of the buyer's creditqualifications and the buyer's credit exposure.
 14. The system of claim13, comprising means to allow the lender access through the system toinformation relating to a cumulative amount of credit exposure by thebuyer to the seller based upon all transactions between the buyer andthe seller for which the system stores information.
 15. The system ofclaim 10, wherein the lender is entitled to at least a portion of anycargo insurance proceeds that may issue in relation to the transaction.16. The system of claim 10, wherein the lender is entitled to at least aportion of any buyer credit assurance proceeds that may issue inrelation to the transaction.
 17. The system of claim 10, wherein theseller's obtaining the loan is contingent upon at least one of theseller's satisfying all of the seller's obligations as defined by thepurchase order agreement and the buyer's waiving any rights to avoid anypayments associated with the purchase order agreement due to theseller's failure to fulfill the seller's obligations as defined by thepurchase order agreement.
 18. The system of claim 3, comprising meansfor the system evaluating whether a first set of payment guaranteecriteria are met, and means for, if the first set of payment guaranteecriteria are evaluated to be met, the system providing a paymentguarantee to the seller to guarantee payment by the buyer in connectionwith the purchase order agreement.
 19. The system of claim 18, whereinthe first set of criteria comprises at least one of a credit exposure ofthe buyer being evaluated by the system to be within a specified maximumcredit exposure, and the seller being evaluated by the system to havecomplied with the seller's obligations as defined by the purchase orderagreement.
 20. The system of claim 3, wherein the means forelectronically evaluating whether the seller has complied with theseller's obligations as defined by the purchase order agreementcomprises means for electronically evaluating whether the seller hascomplied with at least a portion of the seller's obligations as definedby the purchase order agreement, and wherein means for electronicallyproviding a payment instruction if the seller has been evaluated to havecomplied with the seller's obligations as defined by the purchase orderagreement comprises means for electronically providing a paymentinstruction if the seller has been evaluated to have complied with theat least a portion of the seller's obligations as defined by thepurchase order agreement.
 21. A computerized system for facilitatingtransactions in goods or services, the system comprising: means forallowing electronic procurement of a purchase order agreement between aseller and a buyer and relating to a transaction in one or more goods orservices, and for electronically storing the purchase order agreement;means for receiving and storing electronic evidence that the seller hasperformed in connection with fulfilling the seller's obligations asdefined by the purchase order agreement; means for electronicallyevaluating whether the seller has complied with the seller's obligationsas defined by the purchase order agreement; means for electronicallyproviding an opportunity for the seller to obtain advance payment inrelation to the purchase order agreement; means for electronicallyproviding a payment instruction if the seller has been evaluated to havecomplied with the seller's obligations as defined by the purchase orderagreement; and means for receiving and storing electronic evidence thatthe buyer has made one or more payments in connection with fulfillingbuyer's obligations as defined by the purchase order agreement.
 22. Thesystem of claim 21, wherein the advance payment comprises a loanprovided to the seller by a lender.
 23. The system of claim 22, whereinthe lender is a financial institution.
 24. The system of claim 22,wherein the loan is provided to the seller at least in part in returnfor the seller assigning to the lender at least a portion of theseller's entitlement to payment from the buyer in connection with thepurchase order agreement.
 25. The system of claim 22, wherein theseller's obtaining the loan is contingent upon at least one of theseller's satisfying all of the seller's obligations as defined by thepurchase order agreement and the buyer's waiving any rights to avoid anypayments associated with the purchase order agreement due to theseller's failure to fulfill the seller's obligations as defined by thepurchase order agreement.
 26. The system of claim 22, wherein the lenderbecomes a party to a transaction associated with the purchase orderagreement, and wherein the lender becomes entitled to at least a portionof payment by the buyer in relation to the purchase order agreement. 27.The system of claim 26, comprising means to allow the lender to access afirst set of information through the system and relating to thetransaction.
 28. The system of claim 27, wherein the first set ofinformation is limited to information that is pertinent to the lender'sinvolvement in the transaction.
 29. The system of claim 27, comprisingmeans for allowing the lender access through the system to informationthrough the system relating to at least one of the buyer's creditqualifications and the buyer's credit exposure.
 30. The system of claim29, comprising means to allow the lender access through the system toinformation relating to a cumulative amount of credit exposure by thebuyer to the seller based upon all transactions between the buyer andthe seller for which the system stores information.
 31. The system ofclaim 26, wherein the lender is entitled to at least a portion of anycargo insurance proceeds that may issue in relation to the transaction.32. The system of claim 26, wherein the lender is entitled to at least aportion of any buyer credit assurance proceeds that may issue inrelation to the transaction.
 33. The system of claim 26, wherein theseller's obtaining the loan is contingent upon at least one of theseller's satisfying all of the seller's obligations as defined by thepurchase order agreement and the buyer's waiving any rights to avoid anypayments associated with the purchase order agreement due to theseller's failure to fulfill the seller's obligations as defined by thepurchase order agreement.
 34. A computerized method for facilitatingtransactions in goods or services, the method comprising: allowingelectronic procurement of a purchase order agreement between a sellerand a buyer and relating to a transaction in one or more goods orservices, and electronically storing the purchase order agreement;electronically providing an opportunity for the seller to obtainfinancing in relation to the one or more goods or services; receivingand storing electronic evidence that the seller has performed inconnection with fulfilling the seller's obligations as defined by thepurchase order agreement; and electronically evaluating whether theseller has complied with the seller's obligations as defined by thepurchase order agreement.
 35. A computerized method for facilitatingtransactions in goods or services, the method comprising: allowingelectronic procurement of a purchase order agreement between a sellerand a buyer and relating to a transaction in one or more goods orservices, and electronically storing the purchase order agreement;receiving and storing electronic evidence that the seller has performedin connection with fulfilling the seller's obligations as defined by thepurchase order agreement; electronically evaluating whether the sellerhas complied with the seller's obligations as defined by the purchaseorder agreement; and means for electronically providing an opportunityfor the seller to obtain advance payment in relation to the purchaseorder agreement.
 36. A computerized method for facilitating transactionsin goods or services, the method comprising: allowing electronicprocurement of a purchase order agreement between a seller and a buyerand relating to a transaction in one or more goods or services, andelectronically storing the purchase order agreement; electronicallyproviding an opportunity for the seller to obtain financing in relationto the one or more goods or services; receiving and storing electronicevidence that the seller has performed in connection with fulfilling theseller's obligations as defined by the purchase order agreement;electronically evaluating whether the seller has complied with theseller's obligations as defined by the purchase order agreement;electronically providing a payment instruction if the seller has beenevaluated to have complied with the seller's obligations as defined bythe purchase order agreement; and receiving and storing electronicevidence that the buyer has made one or more payments in connection withfulfilling buyer's obligations as defined by the purchase orderagreement.
 37. A computer usable medium storing program code which, whenexecuted on a computerized device, causes the computerized device toexecute a computerized method for facilitating transactions in goods orservices, the method comprising: allowing electronic procurement of apurchase order agreement between a seller and a buyer and relating to atransaction in one or more goods or services, and electronically storingthe purchase order agreement; receiving and storing electronic evidencethat the seller has performed in connection with fulfilling the seller'sobligations as defined by the purchase order agreement; electronicallyevaluating whether the seller has complied with the seller's obligationsas defined by the purchase order agreement; electronically providing anopportunity for the seller to obtain advance payment in relation to thepurchase order agreement; electronically providing a payment instructionif the seller has been evaluated to have complied with the seller'sobligations as defined by the purchase order agreement; and receivingand storing electronic evidence that the buyer has made one or morepayments in connection with fulfilling buyer's obligations as defined bythe purchase order agreement.